Homebuyers nationwide scored record cumulative price discounts in October as sellers cut asking prices more often and listings stayed on the market longer, Zillow reported. The typical U.S. listing posted about $25,000 in total reductions from its original asking price, matching the largest cumulative markdowns the company has recorded.
Those shifts matter for affordability, seller equity and market activity because they bring more listings within reach of buyers and reshape local market dynamics. Zillow’s findings were summarized in a Fox Business report and reflect a broader rebalancing after several years of rapid home-price growth.
Background
Zillow’s analysis compares cumulative price changes from original listing prices through October and shows sellers are making multiple, smaller cuts rather than single large reductions. The share of listings that experienced at least one price cut was 26.9 percent, according to the report. The median size of an individual price cut stayed near recent levels at about $10,000.
Mortgage rates, buyer demand and inventory levels have shifted since the pandemic-era boom, prompting sellers to adjust expectations and pricing strategies. Many homeowners gained substantial equity during the price run-up of 2020 to 2022, which gives some sellers room to accept cuts without necessarily selling at a loss, Zillow senior economist Kara Ng said. For broader coverage of how economic trends affect markets and policy, see our Economy Coverage.
Geographic differences in discounts
The report highlights sharp variation across metropolitan areas, with high-cost coastal markets posting some of the largest median cumulative markdowns from initial listing prices. In general, metros that experienced the largest prior price run-ups also showed the deepest cumulative cuts, while many Heartland and Midwestern areas saw much smaller adjustments.
- San Jose: $70,900 median cumulative discount, the largest among metros in the report.
- Los Angeles: $61,000 median cumulative discount.
- San Francisco: $59,001 median cumulative discount.
- San Diego and New York City: roughly $50,000 median cumulative discounts each.
By contrast, several Midwest and smaller Sun Belt metros posted far smaller median cumulative cuts, reflecting more modest recent price appreciation and different local demand patterns.
- Oklahoma City: $15,000.
- Louisville: $15,000.
- St. Louis: $15,100.
- Indianapolis: $16,000.
- Detroit: $17,100.
Zillow also measured discounts relative to typical home values. Pittsburgh and New Orleans posted among the largest relative markdowns at roughly 9 percent of a typical home value, while Austin, Houston and San Antonio showed markdowns in the roughly 7.9 percent to 8.4 percent range.
Market dynamics and seller behavior
Zillow found sellers are increasingly using a series of smaller price reductions to find a market-clearing price. The company described market activity as the strongest in about three years, driven in part by buyers who are selectively re-entering markets as financing conditions and prices become more favorable in some places.
Where homes sell faster and listings are newer, sellers have less need to cut prices deeply. That helps explain why many Heartland metros have smaller median discounts. In slower or higher-cost markets, repeated cuts are narrowing the gap between initial asking prices and what buyers are willing to pay.
Analysts say the trend toward more frequent, smaller cuts signals calibrated pricing strategies by sellers and greater patience among buyers. Rather than accepting a single steep markdown, sellers may try incremental adjustments to test demand, while buyers who can wait may secure larger savings.
Responses from market participants
Real estate agents and local observers pointed to the discounts as opportunities for buyers who can shop and wait for motivated sellers. For sellers, the environment increases pressure to price more competitively out of the gate or risk longer time on market and a series of reductions.
Industry participants noted that translating list-price discounts into closed sales depends on mortgage rates, inventory and local economic conditions such as job growth and population trends. Where inventory remains constrained, discounts may be smaller or short-lived; where supply is ample, discounts can accelerate and more quickly affect sale prices.
Some sellers benefit from prior price gains that leave equity cushions, reducing urgency to sell at the first offer. Others, particularly those who bought recently or rely on sale proceeds to finance a move, may face tougher decisions about timing and acceptable net proceeds.
Policy implications and housing supply
The uneven pattern of discounts highlights longstanding regional differences in housing supply and affordability. Areas with the largest cumulative cuts tend to be places that had the most rapid price appreciation, often driven by supply constraints, zoning limits and outsized demand. That history can allow sellers to lower asking prices without triggering losses, but it also underscores persistent affordability challenges.
Local officials and policymakers face tradeoffs when seeking to restore balance. Measures that expand supply, such as zoning reform, permitting relief and incentives for new construction, can ease price pressure over time, but they require local political consensus and funding. In the near term, financing options, tax incentives and targeted assistance can affect buyer access and the speed of market adjustment.
Analysis
The data point to a market shifting away from the deep seller advantages seen at the height of the price surge and toward a more negotiated equilibrium in many metros. For governance and accountability, the trend calls for renewed attention to local land-use policies and housing programs that influence supply and affordability. Officials who oversee zoning, permitting and infrastructure investment will shape whether the rebalancing fosters long-term affordability or merely a temporary correction.
From a fiscal perspective, larger cumulative discounts in high-cost metros can reduce housing cost burdens for some buyers and stimulate transaction activity, but they also lower expected proceeds for sellers and can slow mobility if owners delay moving to avoid taking smaller returns. Policymakers should monitor how these shifts affect tax revenues, housing assistance needs and regional labor markets as conditions evolve.
Ultimately, the uneven nature of discounts suggests there is no single national policy fix. Local and state leaders, together with federal housing agencies, will need targeted strategies to address supply constraints, finance access and market transparency so markets can adjust without undermining household finances or economic growth.
